What is Builder’s Risk Insurance?

When you’re building a new structure you’re going to want to have builders risk coverage. Builders risk coverage can apply to commercial buildings. It can also apply to residential homes. So whether you’re building a home or you’re building a commercial project, you’re going to want to have builders risk coverage. What does builders risk coverage do for you, you might ask? It provides coverage for theft of materials when they’re onsite. Once those materials are delivered to your site you are generally responsible for those. So if they’re stolen from the site, the builders risk coverage covers that.

Collapse of the building – if the building collapses due to wind or something like that, the builders risk coverage again will provide coverage for that. Fire – fire is a real common cause of loss while buildings are under construction. Again, builders risk covers that. If you’re building a commercial building many times the builder that you hire will include the builders risk coverage underneath his policy and add it to the bid and you pay for it that way or else you can purchase it on your own.

There are several companies that write builders risk coverage just by itself for commercial project. We certainly can help you with that here at our agency. On a homeowners policy, the way builders risk coverage is typically purchased is that you buy a homeowners policy and then you add an endorsement on for builders risk coverage. Sometimes insurance companies charge a flat fee for this. Sometimes they charge based on how big the completed value of the structure is going to be. So sometimes it’s a sliding scale, sometimes it’s just a flat charge.

But you want to make sure you have this added if you are building at your home or if you’re adding on, your policy may not cover additions so you may want to add the builders risk coverage to cover the period during construction.

If you have questions about builders risk or you’d like to talk to us about what the cost may be, whether it be a commercial project or residential, feel free to call us. You can reach us here at the Philleo agency and through Philleo.com.

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